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Schuylkill County canceled a $1 million contract in 2008 with New World Systems Corp., the same Michigan-based company Luzerne County chose last week to provide new financial software for $1.3 million.

Luzerne County Council members didn't discuss Schuylkill County's problems with the company before approving the $1.3 million deal with New World on Sept. 25.

"This information was brought to my attention after the night council decided to vote on this contract," Councilman Rick Morelli said. "It is information like this that we should have been informed on and (is) why I asked to have an additional two weeks to do more due diligence on this contract."

Council approved the agreement 8-3. Morelli and council members Stephen A. Urban and Stephen J. Urban opposed it, explaining they wanted more time for a review.

County Manager Robert Lawton asked council to vote on the agreement Sept. 21. Before the vote approving the agreement, council voted 8-3 to reject Morelli's motion to postpone a decision.

Morelli said voting to approve the "largest contract that has been brought before the new county council" after "only three days of council having a 75-page contract in hand" and a "15 minute-presentation" on Sept. 25 was "irresponsible."

Schuylkill County chose New World in 2005 to update accounting software, but the computer system never became functional, according to reports in the Pottsville Republican-Herald, which is owned by Times-Shamrock Communications, parent of The Citizens' Voice.

Software malfunctions made the program run painfully slow, and it was prone to crash, Schuylkill County officials said. New World officials alleged computer servers in the Schuylkill County Courthouse could not handle New World software.

"Conversely, and more recently, Lackawanna County had a highly positive experience with their transition to New World," Lawton said, adding county staff unanimously chose the company "after an extensive technical and hands-on review of three qualified firms."

New World "submitted the lowest price proposal of the three qualified firms," and the county "aggressively negotiated a contract with a focus on maximizing support and minimizing cost," Lawton said.

"Why Schuylkill County was unsatisfied, I cannot say," Lawton added. "It is surprising to see that a smaller county agreed to a contract four years ago for an amount apparently almost equal to that negotiated this year by Luzerne."

Luzerne County's agreement with New World calls for software maintenance from Aug. 1, 2013 through Dec. 31, 2017. The cost of maintaining an agreement with the current financial software system provider from Aug. 1, 2013 through Dec. 31, 2017 would be $1.5 million, Lawton said. The current provider is ACS, now owned by Xerox.

Schuylkill County lost $719,000 already paid to New World, and the company agreed to a settlement by dropping its lawsuit demanding payment of the remaining $281,000. Schuylkill County also spent more than $46,000 in payments to Texas attorney Peter Vogel, an expert in computer systems litigation who served as special counsel to Schuylkill County.

mbuffer@citizensvoice.com, 570-821-2073

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